Littler Global Guide - Portugal - Q4 2019

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Minimum Monthly Wage for 2020

New Legislation Enacted

Authors: Ricardo Grilo, Senior Associate and Gonçalo Machado dos Santos, Junior Associate - Garrigues Portugal SLP Sucursal

On November 21, 2019, the official gazette published Decree-Law No. 167/2019, which increased the minimum monthly wage to € 635,00, effective January 1, 2020. The minimum monthly wage determined by law prevails over any inferior wage established in an employment contract or collective bargaining agreement. Therefore, starting on January 1, 2020, any employee that is currently receiving a wage inferior to € 635,00 will be entitled to have the wage updated, at least, to that amount.

Unconstitutionality of a Rule under the Portuguese Commercial Companies Code

Precedential Decision by Judiciary or Regulatory Agency

Authors: Ricardo Grilo, Senior Associate and Gonçalo Machado dos Santos, Junior Associate - Garrigues Portugal SLP Sucursal

The Portuguese Constitutional Court, with judicial decision No. 774/2019, dated December 17, 2019, declared the unconstitutionality of paragraph 2 of Art. 398 of the Portuguese Commercial Companies Code, insofar as it determines the termination of an employment contract, entered into with an employee for less than one year, before the latter is appointed as a director of the employing Company. Under paragraph 4 of Art. 282 of the Portuguese Constitution, the Court’s decision does not have retroactive application.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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